You might be thinking about opening a marihuana provisioning center in Michigan. Now, after the passage of the Medical Marihuana Facilities Licensing Act or the MMFLA (M.C.L. 333.27401 et seq.) that is possible, however only if you obtain municipal approval and a State issued operations license. "Provisioning Center" is the legally acceptable term under Michigan's Bureau of Licensing and Regulatory Affairs, Bureau of Medical Marihuana Regulation, for what was formerly referred to informally as a "dispensary." The present regulations no longer permit such companies to be referred to legally as "dispensaries" and the State requires that they be referred to as marihuana provisioning centers. A provisioning center is essentially a business where qualifying patients under the Michigan Medical Marihuana Act or the MMMA (M.C.L. 333.26421 et seq.) may come to buy medical marihuana for medical usage. While a provisioning center can be a profitable endeavor, there are a few things you to understand before you move forward.
Can You Transport Cannabis In A Private Car?
Presently, under Michigan law, the general guideline is that possession and transport of marihuana in a car is prohibited by law, and subjects you to criminal charges. Only registered qualifying patients and registered caregivers under the MMMA can transport marihuana in a motor vehicle. Even then, they must do so in strict compliance with the MMMA. Marijuana may only transferred in a locked, closed container in the trunk of a vehicle, where it can not be accessed by the driver or persons in the traveler compartment. You might also not have more than 2.5 ounces of usable marihuana, per registered qualifying patient. Caregivers can transport usable marihuana for as much as five patients (and themselves too if the caregiver is also a qualifying patient) or up to 12 plants per patient (again, including plants for the caregiver, if they are also a qualifying patient). Under the MMFLA, however, provisioning centers that are licensed by the State and their local municipality, must only accept marihuana into their center that is brought by a MMFLA State Licensed Secured Transporter, or, if they have a grow or processing center co-located ( connected to or on the same property) and transport of the marihuana will not happen on a public roadway, it can be moved as stated by LARA, BMMR under the Administrative rules.
How Much Marijuana Can You Provide?
A licensed provisioning center under the MMFLA may not offer more than 2.5 ounces of marihuana each day to a registered qualifying patient. A provisioning center that is licensed may also sell to a registered primary caregiver, but not more than 2.5 ounces per qualifying patient attached to the caregiver's license. If you are licensed by the State to operate a provisioning center, you will have to use a point of sale system that has software that is complaint with the Statewide Monitoring Database, which utilizes a software program called METRC. The State permits using twenty-four (24) software programs that are METRC compliant. Every client who goes into a provisioning center, you will need to utilize a point of sale system that has software that is compliant. Every consumer who goes into a provisioning center must have their card run through the Statewide Monitoring Database to guarantee that they have not already been provided their maximum daily quantity of 2.5 ounces from another licensed provisioning center. A provisioning center needs to also update the qualifying patient's profile on the Statewide Monitoring Database after sale, so that the Database will show how much medical marihuana was acquired by the patient at your provisioning center.
What License Do You Need?
You need a full license given by the state to operate as a Michigan provisioning center. If you are growing marijuana, you will likewise need to ensure that you get a Michigan commercial grow license application. You might wish to speak with an MMFLA attorney, such as Fowler & Williams, PLC, about this to ensure that you are fully licensed, or you will be shut down. Most importantly, DO NOT begin operating your provisioning center without a State license being issued to you under the MMFLA. While the process of obtaining a license is intricate and needs a significant amount of time and money, the profitability of these provisioning centers far surpasses the cost of getting one. If you can get approved for a license and make it through the application process to obtain a provisioning center license, you ought to do so before you start operating.
Can You Get More Than One License?
Yes, you can apply and qualify for more than one license. This is useful for any business or person who wants to establish a provisioning center and a grow or processor at the exact same time. According to the law, there is absolutely nothing stopping you from doing this. Further, you can get numerous provisioning center licenses so that you can run numerous provisioning centers in various cities. The licenses do not attach to the person or the business that is applying, permitting you to utilize it anywhere you want. Rather, the licenses attach to the property you list on your application for the business. For that reason, if you wish to open multiple provisioning centers, you will need to send several State applications. If you prefer to get different types of licenses (say a grow or processor license) in addition to a provisioning center, you can co-locate them at one facility, but you must submit different applications for each license type, and should meet the minimum financial and background requirements separately for each license type.
How Much Will A License Cost?
The cost for the license application to the State is $6,000.00 per application, regardless of license type applied for, including for a provisioning center. There are also municipal application charges, which can be as much as $5,000.00 per application. Each municipality is different, and they can charge different fees, and they can vary the charges depending on which type of license you apply for. Typically, however, they charge the maximum enabled, which is $5,000.00 per license application. Further, after you get a State license, there are regulatory assessments that will need to be paid every year, both after issuance and each year after when the license is renewed.
In 2018, the assessments differ.
Secured Transporters and Safety Compliance Facilities (testing labs) have no assessment ($ 0.00).
Class A Growers have a $10,000.00 regulatory assessment.
Class B and Class C Growers, Provisioning Centers and Processors have a $48,000.00 regulatory assessment.
The State has stated that starting in 2019 there will be a standardized regulatory assessment that will apply to all license holders, despite the type of license provided. In the meantime, however, the assessments will stay as noted above. You will also find that there are other professional costs that you will have to pay in order to ensure that your application is complete, and that your business plan, with all of its required parts, is up to par with the State's application requests. Those expenses can differ considerably, and are hard to anticipate.
Needless to say, the application and licensing procedure is an pricey endeavor, however in a market that is slated to do about $891,000,000.00 in annual sales this year, up from about $741,000,000.00 in 2017, the roi might be considerable.
Should You Have A Legal representative?
While not mandatory, you should definitely make certain that you are acquiring guidance from an MMFLA attorney before you think about opening a Michigan provisioning center. It is necessary that you get the very best possible legal suggestions and that you are following all the regulations and requirements. Only an lawyer experienced in dealing with cases under the MMMA and licensing work under the MMFLA, like Fowler & Williams, PLC, can ensure that you have all the tools and guidance that you need to give your application the very best possibility at success. Failure to make sure that your application is complete, and that it supplies support for your capability to presently comply and ensure future compliance with the Administrative rules, your application is far more likely to be declined or rejected, and your dream of opening a provisioning center brought to an unceremonious ending.
How Much Will This Business Cost?
You can anticipate the total start-up fees for this type of business to be anywhere in between 400 and 500K, at a minimum. While the State needs a minimum capitalization requirement of $300,000.00 (one quarter of which must be liquid funds), that will not suffice, realistically, to start business. You will need to potentially acquire land or property in an opted-in municipality. (Here is an up to date list of Michigan Municipalities currently opted-in to MMFLA) There will be mandatory fees, expenses, and professional services that you need to obtain to make sure that your application is precise and total, and to guarantee that you are presently in compliance with all laws and policies, along with ensuring future compliance. This consists of everything from licensing to a full team of staff members and much more. It's definitely not cheap, and you need to be prepared for a heavy investment. However, as noted above, the marketplace is big, and continuing to grow.
Can You Go Mobile?
No, you can not run a mobile provisioning center as it is presently prohibited to operate one in the state of Michigan. Nevertheless, this could change, and that's why it's important to talk to a medical marihuana lawyer frequently, so that you are keeping up to date with modifications to the law. Cannabis law is an evolving and altering field, and as a outcome, there may come a time where the MMFLA or the MMMA is amended to enable a mobile provisioning center.
What Are You Legally Able To Do?
As a provisioning center, your sole function is to supply safe medical marihuana to registered qualifying patients. You might only sell marihuana or marihuana infused items that were grown by a MMFLA licensed grower or processed by a MMFLA licensed processor and the products have actually been tested by a MMFLA licensed safety compliance facility with proper labeling and tracking. You may not offer these products prior to your acquiring a license, unless you were operating with city approval prior to February 15, 2018 and you have actually already submitted an application to the State looking for a license.
Soon a change in law will likely permit recreational cannabis sales. If the ballot initiative passes, for the first 2 years after the State passes recreational marijuana facility regulations and starts accepting licensing applications, only facilities licensed by the MMFLA to offer, grow, process, transport or test medical marihuana will be lawfully allowed to get recreational marihuana licenses for the same activity. Therefore, acquiring a provisioning center license under the MMFLA, offers you the chance to get in the recreational market, where others will not.
What Are The Requirements?
In order to look for a provisioning center license, you need to ensure that you do not have a disqualifying criminal conviction, and that you meet the minimum capitalization requirements, which as noted earlier are $300,000.00 with 25% liquid capital. You will likewise have to acquire an appropriately zoned structure in a city or town that has "opted-in" to the mmfla to permit such facilities to run within their limits. Whether your own it or lease it does not matter, but you need to have the building. After that, you will need to produce a business plan which contains all of the necessary aspects from the state, including a security plan, facility plan, marketing plan, staffing plan, technology plan, recordkeeping plan, waste disposal plan, and more, showing that you will comply with the State's policies now and in the future.
Conclusion
We hope this offers you with some of the info you need prior to opening a Michigan provisioning center. Needless to say, the process is expensive, complex and time consuming, however the reward and ROI can be significant. In reality, getting a qualified MMFLA and MMMA lawyer, like Fowler & Williams, PLC, can help streamline and simplify the application process, and take most of the work off your plate.
If you want details, or want to come in and discuss requesting a provisioning center license, we would love to have you come in for a consultation.
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